Property tax in Amarillo, TX comes from several overlapping local governments that each set their own rate against a single appraised value from the Potter-Randall Appraisal District. Combined rates typically fall somewhere between $2.00 and $2.20 per $100 of taxable value, so a home with $200,000 in taxable value on the Potter County side runs roughly $4,200 a year before exemptions. The exact number shifts annually and depends on which county, school district, and other entities your address falls under.
Who Taxes Your Amarillo Home
Amarillo’s city limits cross a county line, which is why a single bill can involve so many entities. Homes on the north and east side generally sit in Potter County; homes on the south and west sit in Randall County. Everyone inside the city limits pays the City of Amarillo rate regardless of county. Most homeowners also pay Amarillo Independent School District, Amarillo College, and the High Plains Underground Water Conservation District. Properties on the southern fringes near Canyon may instead fall under Canyon Independent School District, which carries a slightly different rate.
Recent approximate rates per $100 of taxable value:
- City of Amarillo: $0.43
- Amarillo ISD: $0.87
- Amarillo College: $0.22
- Potter County: $0.59
- Randall County: $0.40
The school district takes the largest share by a wide margin, which is also why the school-related exemptions below move your bill the most.
How Your Taxable Value Is Set
The Potter-Randall Appraisal District determines market value for every property in its jurisdiction as of January 1 each year.1State of Texas. Texas Code Tax Code 23.23 – Limitation on Appraised Value of Residence Homestead Appraisers use mass appraisal methods, drawing on recent local sales and physical characteristics like square footage, age, condition, and lot size. If your value changes from the prior year, you’ll get a Notice of Appraised Value in the spring showing the district’s figure, any exemptions applied, and protest instructions.
The 10 Percent Homestead Cap
If you’ve claimed a homestead exemption, Texas law caps how fast your appraised value can climb for tax purposes. The appraisal district cannot raise your homestead’s appraised value by more than 10 percent per year, plus the value of any new construction.1State of Texas. Texas Code Tax Code 23.23 – Limitation on Appraised Value of Residence Homestead The cap takes effect on January 1 of the year after you first qualify, so your first year is assessed at full market value.
In a rising market, this matters. If market value jumped from $180,000 to $220,000, the district would record both figures, but your taxable appraised value could only rise to $198,000. The gap carries forward and closes gradually as the cap allows more annual increases. Routine maintenance and repairs don’t count as new improvements, so replacing a roof or repainting won’t push your value above the cap.1State of Texas. Texas Code Tax Code 23.23 – Limitation on Appraised Value of Residence Homestead
Exemptions That Cut Your Bill
Amarillo homeowners apply for exemptions through the Potter-Randall Appraisal District. You’ll need a Texas driver’s license or state ID with an address matching the property. Forms are at the district office or on its website. Failing to file the homestead exemption is the single most common reason people overpay.
Residence Homestead Exemption
Any homeowner using the property as a primary residence can claim a $140,000 reduction in appraised value for school district taxes.2State of Texas. Texas Code Tax Code 11.13 – Residence Homestead On a home appraised at $250,000, the school district would tax only $110,000. Cities, counties, and other local entities may offer their own optional homestead exemptions on top of the school amount, but those are smaller and vary by entity.
Over-65 and Disability Exemptions
Homeowners 65 or older, or those meeting the legal definition of disability, qualify for an additional $60,000 off appraised value for school district taxes, stacked on top of the standard $140,000 homestead exemption.2State of Texas. Texas Code Tax Code 11.13 – Residence Homestead For a $250,000 home, the combined exemptions reduce school-taxable value to $50,000.
There’s a second benefit worth knowing about. Once you turn 65 and have a homestead exemption, the school district freezes your school tax amount at that year’s level. Your school taxes will never exceed what you paid that first qualifying year, even if values or rates climb. If your home’s value falls, you pay the lower amount, but the ceiling never rises above the frozen figure. Disability exemptions trigger the same freeze.
Disabled Veteran Exemptions
Veterans with a VA service-connected disability rating receive a partial exemption that scales with severity:3State of Texas. Texas Code Tax Code 11.22 – Disabled Veterans
- 10 to 29 percent rating: up to $5,000 off assessed value
- 30 to 49 percent: up to $7,500
- 50 to 69 percent: up to $10,000
- 70 percent or higher: up to $12,000
Veterans 65 or older with at least a 10 percent rating, totally blind, or who have lost the use of a limb also qualify for the $12,000 exemption regardless of percentage.3State of Texas. Texas Code Tax Code 11.22 – Disabled Veterans
Veterans rated 100 percent disabled or classified as individually unemployable by the VA receive a total exemption on the full appraised value of their residence homestead and owe zero property taxes. A surviving spouse who was married to the veteran at the time of death and has not remarried can continue the same total exemption on the same property, or transfer a dollar-equivalent exemption to a new homestead.4State of Texas. Texas Code Tax Code 11.131 – Residence Homestead of 100 Percent or Totally Disabled Veteran
Protesting Your Appraised Value
If you think the district set your value too high, you can file a protest with the Appraisal Review Board at no cost. Common grounds are that the appraised value exceeds what the property would actually sell for, or that it’s unequal compared to similar homes.5Texas Comptroller of Public Accounts. Appraisal Protests and Appeals
The deadline is May 15 or 30 days from the date the appraisal district mails your notice, whichever is later. The 30-day clock starts on the mailing date, not the day you receive it.5Texas Comptroller of Public Accounts. Appraisal Protests and Appeals Miss the deadline and you forfeit your right to challenge that year’s value.
Successful protests almost always come down to evidence. Recent sales prices for comparable homes nearby that sold for less than your appraised value are the strongest material. Repair estimates, photos of damage or deferred maintenance, and documentation of features the district recorded incorrectly (wrong square footage, a pool that doesn’t exist) all help. The ARB is an independent citizen panel, not appraisal district staff, and it can adjust your value based on what you bring.
Payment Deadline and Late Penalties
Tax statements are mailed around October 1 by the Potter County or Randall County Tax Assessor-Collector, depending on your property’s location. You have until January 31 of the following year to pay in full without any penalty or interest.6Randall County, Texas. Frequently Asked Questions – Property Taxes Payment is accepted through the county’s online portal, by mail, or in person.
After February 1 the cost escalates quickly. A 6 percent penalty hits in the first month of delinquency, then increases by 1 percent each additional month. On July 1 the total penalty jumps to 12 percent regardless of month count. Interest accrues separately at 1 percent per month on top of the penalty.7State of Texas. Texas Code Tax Code 33.01 – Penalties and Interest
The worst piece arrives after July 1. If the account has been referred to a collection attorney, an additional penalty of up to 20 percent of the total tax owed can be added for attorney fees.8Texas Comptroller of Public Accounts. Penalty Tax Bills On a $4,000 bill, that alone adds $800 before counting penalties and interest. A bill that was manageable in February can nearly double by year end.
Installment Plans and Tax Deferral
Homeowners who are 65 or older, disabled, or qualifying disabled veterans can split property taxes into four equal installments without penalty. The first payment is due before February 1, with remaining installments due before April 1, June 1, and August 1. You have to include written notice with the first payment stating your intent to use the installment plan.9Texas Comptroller of Public Accounts. Payment Options Miss an installment and only the unpaid portion becomes delinquent, incurring the standard 6 percent penalty and monthly interest.
A separate option exists for homeowners who truly cannot pay: tax deferral. Those 65 or older, disabled, or qualifying veterans can file an affidavit with the appraisal district to postpone collection indefinitely while they live in the home. During the deferral, the county cannot sue or foreclose, but the tax lien stays on the property and interest accrues at 5 percent per year. When the homeowner moves out, sells, or passes away, the deferred taxes come due. A surviving spouse aged 55 or older who was living in the home can continue the deferral.10State of Texas. Texas Code Tax Code 33.06 – Deferred Collection of Taxes on Residence Homestead of Elderly or Disabled Person or Disabled Veteran Accumulating interest over many years can grow substantial, so deferral works best as a last resort for staying in the home.
What Happens If You Don’t Pay
Delinquent property taxes create a lien that prevents selling or refinancing until cleared, because title companies and lenders won’t close with an outstanding tax lien. Penalties and interest keep growing, and attorney fees after July 1 push the balance up faster than most people expect.
If taxes stay unpaid long enough, taxing entities can sue to foreclose on the lien and force a sale. Texas allows a right of redemption after a tax sale for most residential properties, giving the former owner a window to buy the property back by paying the sale price plus a premium. Reaching that point means losing control of your home, absorbing legal costs, and potentially losing the property outright if you can’t redeem in time. Taxing entities in the Amarillo area do pursue delinquent accounts.
How Mortgage Escrow Fits In
Most Amarillo homeowners with a mortgage don’t write a check to the county directly. The lender estimates annual property taxes and insurance, divides the total into monthly portions, adds that to your mortgage payment, holds the funds in escrow, and pays the tax bill when it comes due.
Lenders perform an annual escrow analysis, comparing what they collected against what was actually paid. If your appraised value went up or a taxing entity raised its rate, the escrow account may come up short, which triggers a higher monthly payment for the next year. The reverse happens too: if your value dropped or you secured a new exemption, you may get a small refund or a lower monthly payment. Expect any change to your appraised value to show up in your monthly payment several months later, once the next escrow analysis runs.